The activity rate for the General Factory activity cost pool under activity-based costing is closest to:
A)$56.10 per MH
B)$293.23 per MH
C)$76.24 per MH
D)$98.35 per MH

Question

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $609,770 ÷ 6,200 MHs = $98.35 per MH
Reference: CH04-Ref3
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 11ea7998_5ea2_aa38_911b_137a6a13941d_TB2627_00_TB2627_00

The Activity Rate for the General Factory Activity Cost Pool